Last June 28 we saw GMA7 gap up followed by an uptrend movement for a few days then we saw a confirmed Hanging Man that reverses the trend. While it was going south we saw some indicators that suggests reversal like the two Dojis on July 19 and 20 but it wasn’t confirmed and a consolidation mode begun. Last week the general trend was downward and our last candlestick is a Hammer (looks like a Dragonfly Doji too). Both indicators suggest that the price might reverse.
The Hammer is characterized by a close above the open thus causing a green body, the situation looks even better for the bulls.
The Bullish Dragonfly Doji pattern is generally considered more bullish and has a higher reliability than the Bullish Hammer.
The reliability of Bullish Hammer Pattern is low. It requires confirmation of the implied trend reversal by a green candlestick, a large gap up or a higher close on the next trading day.